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You must edit (input) all cells that are yellow throughout the spreadsheet. Management assumptions to help you determine the inputs are gray throughout the spreadsheet
You must edit (input) all cells that are yellow throughout the spreadsheet. Management assumptions to help you determine the inputs are gray throughout the spreadsheet Keep or drop a product line (20 points): Members of the board of directors of Douglas' Furniture Co. have received the following operating income data for the year just ended: Members of the board are surprised that the living room furniture line is losing money. They commission a study to determine whether the company should discontinue the line. \begin{tabular}{|l|lr|} \hline \multicolumn{2}{|c|}{ Company accountants estimate that discontinuing the living room line will: } \\ \hline Decrease fixed costs of goods sold by: & $ & 82,000 \\ \hline Decrease fixed SG\&A expense by & $ & 17,000 \\ \hline \end{tabular} 1. Prepare an incremental analysis to show whether Douglas' Furniture Co. should discontinue the living room product line. USE EXCEL FORMULAS TO CALCULATE. \begin{tabular}{|l|c|c|c|} \hline & TotalsWITHlivingroomfurniture & TotalsWITHOUTlivingroomfurniture & Difference \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} Compare your answer from requirement \#1 and requirement \#2. What do you notice? Would you keep or drop the living room furniture line? Sell as-is or process further (17 points): Douglas' Funiture Co. is considering whether they want to sell their furniture wood finish spray as-is or process it further. Douglas' has spent $20,000 to refine 70,000 gallons of its furniture wood finish spray, Alternatively, Douglas can process the furniture wood finish spray which can be sold to retail stores for $2.50 a gallon. Shipping costs for selling the further, and sell it to the general public for $3.00 a gallon. The processing will yield 65,000 gallons of spray at a cost of $0.45 per spray will be $15,000. gallon. Shipping costs for selling the spray will be $15,000. 1. Identify two of the costs that are irrelevant for this decision. Explan why each of them is irrelevant. \begin{tabular}{|l|l|l|} \hline Irrelevant cost \\ \hline Explanation \\ \hline \end{tabular} 2. Show the expected net revenue difference between the two alternative batches (as-is or processed further). USE EXCEL FORMULAS TO CALCULATE. \begin{tabular}{|l|l|l|l|} \hline & Sell as-is & \multicolumn{1}{|c|}{ Process further } \\ \hline & & & \\ \hline & & & \\ \hline Net benefit to operating income & & & \\ \hline \end{tabular} Should Douglas sell the furniture wood finish spray as-is or process it further? You must edit (input) all cells that are yellow throughout the spreadsheet. Management assumptions to help you determine the inputs are gray throughout the spreadsheet Keep or drop a product line (20 points): Members of the board of directors of Douglas' Furniture Co. have received the following operating income data for the year just ended: Members of the board are surprised that the living room furniture line is losing money. They commission a study to determine whether the company should discontinue the line. \begin{tabular}{|l|lr|} \hline \multicolumn{2}{|c|}{ Company accountants estimate that discontinuing the living room line will: } \\ \hline Decrease fixed costs of goods sold by: & $ & 82,000 \\ \hline Decrease fixed SG\&A expense by & $ & 17,000 \\ \hline \end{tabular} 1. Prepare an incremental analysis to show whether Douglas' Furniture Co. should discontinue the living room product line. USE EXCEL FORMULAS TO CALCULATE. \begin{tabular}{|l|c|c|c|} \hline & TotalsWITHlivingroomfurniture & TotalsWITHOUTlivingroomfurniture & Difference \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} Compare your answer from requirement \#1 and requirement \#2. What do you notice? Would you keep or drop the living room furniture line? Sell as-is or process further (17 points): Douglas' Funiture Co. is considering whether they want to sell their furniture wood finish spray as-is or process it further. Douglas' has spent $20,000 to refine 70,000 gallons of its furniture wood finish spray, Alternatively, Douglas can process the furniture wood finish spray which can be sold to retail stores for $2.50 a gallon. Shipping costs for selling the further, and sell it to the general public for $3.00 a gallon. The processing will yield 65,000 gallons of spray at a cost of $0.45 per spray will be $15,000. gallon. Shipping costs for selling the spray will be $15,000. 1. Identify two of the costs that are irrelevant for this decision. Explan why each of them is irrelevant. \begin{tabular}{|l|l|l|} \hline Irrelevant cost \\ \hline Explanation \\ \hline \end{tabular} 2. Show the expected net revenue difference between the two alternative batches (as-is or processed further). USE EXCEL FORMULAS TO CALCULATE. \begin{tabular}{|l|l|l|l|} \hline & Sell as-is & \multicolumn{1}{|c|}{ Process further } \\ \hline & & & \\ \hline & & & \\ \hline Net benefit to operating income & & & \\ \hline \end{tabular} Should Douglas sell the furniture wood finish spray as-is or process it further
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